Effects of Us Bank Mergers on Bank Risk and Value

Scholarly Paper (Advanced Seminar) aus dem Jahr 2006 im Fachbereich Wirtschaft - Investition und Finanzierung, einseitig bedruckt, Note: 1,3, Humboldt-Universität zu Berlin (Institut für Bank- und Börsenwesen), Veranstaltung: Hauptseminar Finanzierung, 20 Eintragungen im Literaturverzeichnis, Sprache: Englisch, Abstract: This paper observes the impacts of domestic US commercial bank M&As in the 1990s on individual institutions. It shows potential changes in a bank's risk exposure and how these can affect a merged bank's value. It provides a theoretical consideration as well as a review of empirical studies. The result is that a merger might lead to a risk benefit. In this case, there is, c.p., potential for a value increase. Empirically, risk benefits were either absent or offset by managers' higher risk taking.